Silvano Fashion Slumps on Sales Slowdown: Tallinn Mover

Nov. 16 (Bloomberg) -- AS Silvano Fashion Group, the
second-largest Baltic clothing company, plunged the most in four
months after sales growth slowed in the third quarter.

The shares fell as much as 7.7 percent in Tallinn in
intraday trading, the most in 30 months, before closing down 7.1
percent at 3 euros, valuing the company at 118 million euros
($150 million). Volume of 221,399 shares was equivalent to 577
percent of the three-month daily average, according to data
compiled by Bloomberg.

Third-quarter revenue increased 6.8 percent to 32.4 million
euros from a year earlier after climbing 19 percent in the
previous three months, the company said in a regulatory
statement late yesterday.

“The drop of sales growth warns about the slowdown of the
company’s activity,” Tadas Povilauskas, a Vilnius-based analyst
at Finasta, said in a note today.

Net income shrank to 2.8 million euros from 6.9 million
euros a year earlier, the company said. That was mainly due to
accounting rules for hyperinflation in Belarus, where Silvano
makes most of the lingerie that it sells in Russia, Belarus,
Ukraine and the Baltic region, it said.